Am using PRoC module to receive the ultrasonic sensor's data and displaying on the terminal using UART Communication. What's my question is, can the data received on the terminal be stored in File(.txt, .docx format)??

Is file handling system supports in proc?

If yes, how can i set a path to create a file and write the data in it. I have given a try but the file is not being created!

PSoCs and PRoCs do not have got an OS, so there is no access to a file possible.

On the windows side you will be able to save data red from a com interface into a file. Will of course need some program written in C++, C# or whatever you prefer. Cold probably be done using a script / batch file.

"But the file is not being created!" Of course not. The PSoC is not part of your PC, it is only connected to it. It is a similar problem to store the mouse movements into a file. Any "C code(File Handling)" on the PSoC side has no OS to communicate with. Use a simple C-code on the windows side which opens the correct com-port and writes data into a file. Think about how to end that process, when the file is not closed, the data may be discarted.